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9/13/22 Monday’s Match, Tuesday Tracking, 3 Charts You Need to See

News:

Monday, the bulls followed up on Friday’s gains.

All four indexes posted solid gains…

  • Dow Jones +0.7%
  • Nasdaq +1.3%
  • S&P 500 +1.1%
  • Russell 2000 +1.2%

The follow-up buying puts the market on the best possible trajectory, following the now broken streak of down Fridays and down Mondays.

Down Friday Down Friday broken trend chart showing projected gains

History tells us to expect more gains over the next 60 trading days.

Sector Round-Up

All 11 sectors finished higher again on Monday.

The top performer…

  • Energy (XLE) +1.8% as it remains the most volatile sector

It was followed by…

  • Technology (XLK) +1.6%
  • Consumer Discretionary (XLY) +1.3%

These are the “risk on” sectors we like to see at the top in a bull market.

At the bottom…

  • Communications (XLC) +0.5%
  • Materials (XLP) +0.4%

Communication is typically a “risk on” sector too. But it has been struggling to pick up momentum with the rest of the market.

The sector as a whole remains in a downtrend.

XLC chart showing a downtrend
XLC Daily Candles – Chart via thinkorswim

Companies in this sector include…

  • Alphabet (GOOG, GOOGL)
  • Meta Platforms (META)
  • Verizon (VZ)
  • Comcast (CMCSA

We’re listening to what the market is telling us…

Our favorite sector heading into Q4 is technology.

Technicals:

The VIX is behaving strangely.

Yesterday the volatility gauge rose with the markets.

Typically the index has an inverse relationship with the SPY.

This is the second time in the past week it’s gone against tradition. This morning a wedge is forming…

VIX chart wedge is marked
VIX Daily Candles – Chart via thinkorswim

We’ll be keeping a close on a VIX as the market digests the news cycle.

But for now, conditions remain extremely bullish.

Timing:

This morning futures are on the rise.

The latest CPI inflation data drops at 8:30 AM. The headlines will discuss the number in great detail.

But the only thing that matters is the market’s reaction.

As always, the close is more important than the open.

Watchlist:

^Open Position

IMRA support at $2
SPWR support at $27
MNTK support at $19
DCPH support at $18
RYTM resistance at $27
CRBU support at $12
AGIO support at $32
RVNC on watch
PNT resistance at $10.50
SGML support at $25
SEEL support at $1.20, resistance at $1.35
^GEO support at $8, resistance at $9
ARDX support at $1.20. resistance at $1.40
PGEN support at $2.60
TCRT on watch
RUN support at $38
^GERN support at $2.50, resistance at $2.80
TAL support at $5

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